[Congressional Record Volume 155, Number 42 (Tuesday, March 10, 2009)]
[Extensions of Remarks]
[Pages E620-E621]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               IN SUPPORT OF SMALL, MINORITY-OWNED BANKS

                                 ______
                                 

                          HON. EMANUEL CLEAVER

                              of missouri

                    in the house of representatives

                        Tuesday, March 10, 2009

  Mr. CLEAVER. Madam Speaker, on behalf of Congressman Al Green and 
myself, I wish to submit copies of letters sent by the Greenling 
Institute of Berkeley, California, and by the National Bankers 
Association, which highlight the need for small banks, including 
minority owned banks that work with the inner city communities, to 
receive some of the federal Troubled Asset Relief Program (TARP) monies 
that are being distributed largely to the national financial 
institutions. While AIG, Citibank, JPMorganChase and others are 
receiving billions of dollars in aid, the opportunity to save a 
minority bank, OneUnited, with twelve million dollars is not only right 
and justified, it is essential. It is these small banks, typified by 
OneUnited that are vital to the communities we represent.
  We commend the actions taken by Representative Frank in urging the 
Department of the Treasury to notice and come to the aid of OneUnited. 
It is not a coincidence that so much attention has been devoted to what 
is a relatively small amount of money in the context of the hundreds of 
billions of dollars that have been distributed. OneUnited has been a 
profitable bank for every quarter for the last ten years, but had its 
capital wiped out when Fannie and Freddie preferred shares were deemed 
valueless due to the takeover of Fannie and Freddie by the Federal 
government. The preferred stock of Fannie and Freddie were always 
highly recommended investments and, in the case of OneUnited, a 
Community Development Finance Institution, these investments fit the 
mission of the bank. Before any TARP money was invested, OneUnited 
first received an investment of $17 million dollars of additional 
private capital. This bank, like others, is trying to cope in this new 
financial world. We see every reason that minority banks are worthy of 
federal assistance and should be treated with the same care that the 
larger, and I might add, more irresponsible and careless banks have 
been treated by the Federal Government.
  Again, Madam Speaker, Congressman Green and I applaud the actions 
taken by our colleague, Chairman Frank in support of OneUnited a small 
minority owned bank. We encourage the Treasury Department and the 
federal financial regulators to treat all stressed financial 
institutions fairly regarding usage of the TARP funds during this very 
difficult financial situation.

                                    The Greenlining Institute,

                                   Berkeley, CA, January 26, 2009.
     One united and creating equal opportunities for minority-
         owned banks under TARP.

     Congressman Barney Frank,
     Rayburn H.O.B.,
     Washington, DC.
       Dear Barney, Greenlining Institute met with the Federal 
     Reserve, OCC and FDIC on November 17th and 18th to, in part, 
     formally complain that none of the fifty-two Latino or 
     African American-owned banks, as of early November, had 
     received any bailout funds. We contended that many were 
     better equipped than Citigroup, for example, to assist Main 
     St. borrowers but lack the clout to advance their interests.

[[Page E621]]

       We are pleased and very supportive of your efforts to urge 
     that TARP funds also be considered for our nation's fifty-two 
     small African American and Latino-owned banks such as One 
     United. (Wall St. Journal, 1/22/09.)
       In contrast to banks like One United, Merrill Lynch and 
     BofA spent $8 million dollars in lobbying regulators and 
     Congress in 2008. (Wall St. Journal, 1/24/09). Small banks 
     ($1 billion dollars or less) can't afford to do this and need 
     all the indirect advocacy that you and a few others have 
     advanced for small minority-owned banks.
       Since African American and U.S. Latino-owned banks have 
     less than $8 billion dollars in aggregate assets, the maximum 
     they are eligible for under TARP would be just $240 million 
     dollars. This is approximately a mere one-tenth of one 
     percent (00.1%) of the amount the major banks have already 
     received in TARP bailouts. And this represents only a half of 
     one percent of the $45 billion dollars Citigroup has so far 
     received from TARP.
       Thanks for continuing to advocate for Main St.
           Warm Regards,
     Orson Aguilar,
       Executive Director.
     Bob Gnaizda,
       Consultant.


                                 National Bankers Association,

                                Washington, DC, February 23, 2009.
     Hon. Barney Frank,
     House of Representatives, Rayburn House Office Bldg., 
         Washington, DC.
       Dear Chairman Frank, I write to you on behalf of the 
     National Bankers Association (the NBA), which, as you know, 
     represents the interests of minority- and women-owned 
     financial institutions from across America. The NBA would 
     like to thank you for your continued and unwavering advocacy 
     on behalf of minority banks.
       You have always maintained open lines of communication with 
     us by, among other things, meeting with us during our annual 
     Legislative Summit, and you are always in tune with what 
     minority banks and the communities they serve need and 
     deserve. Moreover, you have taken actions that have led to 
     Government Accountability Office studies on, and, as Chairman 
     of the House Financial Services Committee, you have held 
     hearings on, the regulation of minority banks. Your actions 
     have led to increased support, financial and otherwise, for 
     programs that allow us to continue to serve the communities 
     that our members target and that are often ignored by 
     majority financial institutions. With your unceasing 
     assistance, the minority banking sector has remained 
     financially sound, and our members have continued to operate 
     in accordance with their commitment to extending credit to 
     ordinary Americans.
       We remain confident that you recognize the importance of 
     minority banks in this country, particularly to our inner 
     cities, where they not only provide critical financial 
     services, but, as importantly, serve as a beacon of hope to 
     underserved minority residents. You have consistently 
     acknowledged that minority banks have maximum impact in the 
     communities that need their services and that inner cities 
     depend on minority banks for their financial and 
     psychological survival. Thus, these institutions are an 
     essential element of our banking community. As you stated 
     recently, ``To help a minority bank stay in business--that is 
     what democracy means.''
       We recognize that, despite your championing of such worthy 
     causes, you have been the target of a significant amount of 
     negative press in recent months with regard to a provision 
     designed to aid minority banks that you put in the Troubled 
     Assets Relief Program bill. You nevertheless have refused to 
     back down from your critics or abandon the plight of minority 
     banks. Rather, you have continued to publicly recognize that 
     many minority institutions are facing a dire economic outlook 
     through no fault of their own, and that these institutions, 
     which are often the lifeblood of their communities, deserve 
     the same opportunities as the largest banks in the country to 
     benefit from our government's attempt to strengthen the U.S. 
     economy.
       We are truly grateful for your continued backing and 
     assistance of minority banks--even in the face of undue 
     criticism--which allow us to continue to support you in your 
     broader efforts to revitalize urban America. This letter is 
     only a small token of our appreciation. We cannot thank you 
     enough for the support that you unfailingly have shown for us 
     and our members.
           Sincerely.
                                           Michael A. Grant, J.D.,
     President.

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